Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Soilbuild REIT has announced a distribution per unit (DPU) of 0.745 cents and 1.628 cents for the second quarter and half year ended 30 June 2020 respectively.

The 2Q 2020 DPU represents a fall of some 36.8% from the 1.179 cents reported in the corresponding period of 2019.

In 2Q FY2020, the REIT’s gross revenue rose 2.9% year-on-year due to higher revenue from the newly acquired 25 Grenfell Street, but was partially offset by lower contribution from 2 Pioneer Sector 1 which is under redevelopment.

Net property income fell 11.8% y-o-y on the back of an allowance for doubtful receivables of SGD1.5 million (USD1.08 million) and higher property expenses for 25 Grenfell Street.

The REIT’s manager has provided for trade receivables in view of potential credit notes to be issued to tenants relating to rent reliefs.

Portfolio occupancy rate rose 4.8 percentage points quarter-on-quarter to 89.5% in 2Q FY2020.

Positive rental reversion of 3.1% and 23.3% was recorded for renewals and new leases in 2Q FY2020 respectively.

Weighted average lease expiry (WALE) by net lettable area and gross rental income stood at 3.0 and 3.4 years respectively.

Data from Soilbuild REIT’s results for the quarter have been updated into the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.